Answer Expert Verified. Purchasing something that you already have enough of leads to decreasing marginal utility. When a person spends their money purchasing products or services beyond their immediate needs, then they will enjoy the spending power of their money much less.
Which describes a situation in which a shortage occurs?
In the economy and related fields, a shortage occurs if the supply (units of a product available) is lower than the demand (consumers that want the product); this implies, the quantity of a product is not enough, and therefore just some consumers will be able to buy the product even if all want this product and can pay …
Which is the best example of opportunity cost?
The last consideration is the un-thinking acceptance of market values. The market value of a resource may not be an adequate reflection of opportunity cost. An example is voluntary care – the market price is zero but there is an opportunity cost in terms of the alternative ways in which the carer could have utilized the time.
Which is a situation in which the price of a good would rise?
Which describes a situation in which the price of a good would rise? – Consumers start using less of a good because more substitutes are available. – A new technology allows producers to increase supply very quickly. – Production is increased in order to catch up with a sudden rise in demand.
What are the four main areas of resource use?
The four main areas of resource use which may require specific identification and measurement of costs are: health care resources; other related services; clients and their families; and time lost from usual activity.
What are the advantages of being an eco-friendly business?
Reducing the environmental impact of your business will improve the sustainability of your business. If you are less dependent on natural resources than your competitors and have ways to deal with rising costs due to climate change, your business will have a greater chance of long-term success.
